Course Description
The Capital Market typically covers the structure, functioning, and instruments of capital markets, along with regulations, investment strategies, and analysis techniques. It’s usually included in undergraduate and postgraduate finance courses like B.Com, BBA, MBA, or specialized certifications. Here’s an overview of a typical Capital Market syllabus:
What You’ll Learn From This Course
- Introduction to Capital Markets
Definition and Importance:
- What is a capital market?
- Role of capital markets in the economy.
- Difference between primary and secondary markets.
Types of Capital Markets:
- Equity markets, debt markets, derivatives markets.
- Money market vs. capital market.
Market Participants:
- Investors, issuers, intermediaries (brokers, dealers, market makers).
- Role of regulatory bodies (SEBI, RBI).
- Structure of Capital Markets
Market Segments:
- Primary market: IPOs, follow-on public offers.
- Secondary market: Stock exchanges (NSE, BSE) and over-the-counter (OTC) markets.
Financial Instruments:
- Equity shares, preference shares, debentures, bonds.
- Government securities, mutual funds, exchange-traded funds (ETFs).
Market Indices:
- Concept and importance of indices (Nifty, Sensex).
- Calculation and types of indices.
- Primary Market Operations
Initial Public Offerings (IPOs):
- Process of issuing IPOs.
- Book building, fixed price offering, underwriting.
Rights Issue and Bonus Shares:
- Understanding rights issue, bonus shares, and their impact on shareholders.
Regulatory Framework:
- Role of SEBI in regulating the primary market.
- Compliance and disclosure requirements for issuers.
- Secondary Market Operations
Trading Mechanism:
- Types of orders (market orders, limit orders, stop-loss orders).
- Trading platforms and online trading.
Settlement and Clearing:
- Process of settlement in stock exchanges.
- Role of clearing corporations in managing risks.
Market Participants in Secondary Market:
- Institutional vs. retail investors.
- Role of foreign institutional investors (FIIs).
- Investment Analysis and Strategies
Fundamental Analysis:
- Analyzing financial statements, ratios, and company performance.
- Economic indicators and their impact on stock prices.
Technical Analysis:
- Understanding charts, trends, and indicators (moving averages, RSI, MACD).
- Behavioral finance concepts in market analysis.
Portfolio Management:
- Diversification and asset allocation strategies.
- Risk-return trade-offs and investment goals.
- Derivatives Market
Introduction to Derivatives:
- Types of derivatives: Forwards, futures, options, and swaps.
- Role of derivatives in risk management.
Options Trading:
- Basic concepts of call and put options.
- Options pricing models (Black-Scholes model).
Futures Trading:
- Mechanics of futures contracts.
- Hedging and speculation using futures.
- Regulation of Capital Markets
Role of Regulatory Authorities:
- Overview of SEBI, RBI, and their functions in capital market regulation.
- Regulations governing securities trading, market conduct, and investor protection.
Investor Protection Measures:
- Measures for safeguarding investors’ interests.
- Role of arbitration and mediation in dispute resolution.
- Financial Intermediaries and Institutions
Types of Financial Intermediaries:
- Role of banks, mutual funds, insurance companies, and pension funds in capital markets.
- Investment banks and their functions.
Mutual Funds and ETFs:
- Structure and types of mutual funds.
- Advantages and disadvantages of ETFs.
- International Capital Markets
Global Capital Markets:
- Overview of international stock exchanges and markets.
- Role of foreign institutional investors and global capital flows.
Cross-Border Investments:
- Challenges and opportunities in international investing.
- Currency risk and its management.
- Current Trends and Developments
Emerging Trends in Capital Markets:
- Impact of technology: Algorithmic trading, robo-advisors, and fintech innovations.
- Sustainable investing and ESG (Environmental, Social, Governance) criteria.
Impact of Macroeconomic Factors:
- Influence of economic policies, interest rates, and geopolitical events on capital markets.
- Project Work and Case Studies
Practical Applications:
- Case studies on capital market operations and investment strategies.
- Simulated trading and portfolio management projects.
Research Projects:
- Analyzing market trends, investment opportunities, and company performances.
Lessons:
